Germany secures an astonishing 90% of Europe's unprecedented defense technology funding
In the first half of 2025, European defense tech startups have broken records, surpassing the entire funding for 2024 which was $605 million, with a staggering $971 million raised in H1 2025[1].
Leading the pack is Munich-based Helsing, a company specialising in AI software for weapons, vehicles, and military strategy. Helsing secured Europe's largest funding round of the year so far, raising an impressive €600 million ($660 million) in June 2025[1]. This funding round makes Helsing the continent's most valuable private company, with a valuation of €12 billion ($13.2 billion)[1].
Helsing's technology has been integrated into battlefield simulations, electronic warfare for fighter jets, and drones in Ukraine[1]. The company has also unveiled plans for a fleet of autonomous reconnaissance submarines to boost Europe's maritime defences[1]. Helsing's machines drive around on treads and can be fitted with various equipment like radar, mine-sweeping devices, or medical stretchers, making them versatile on the battlefield[1].
German startups have dominated the investments, raising $881 million, accounting for 90% of Europe's total defence tech investments[1]. Other notable German startups include Quantum Systems, which raised €160 million ($176 million), and ARX Robotics, which secured €31 million ($34 million) in April to expand its fleet of autonomous land drones[1]. ARX's machines can carry military payloads weighing up to 500kg, including injured soldiers, across the battlefield[1].
The investments in defence tech startups suggest a broader defence tech boom in Europe, with governments turning to technologies like drones, submarines, and AI-based weaponry[1]. This trend is being driven by venture capitalists capitalising on the European push to rearm amid heightened geopolitical tensions[1].
Kate Leaman, chief market analyst at online broker AvaTrade, stated that military tech companies with AI-driven solutions have "huge potential" for growth[1]. Leaman also suggested that tech-centric firms could potentially capture a significant share of the defence market[1].
Other notable European startups include Delian Alliance Industries, a Greek defense tech startup founded by a former Apple roboticist, which raised $14 million in a Series A round in mid-2025, focusing on autonomous weapons like drones and surveillance towers[3]. Estonian VC firm Darkstar, targeting early-stage defense startups with combat-proven solutions from Ukraine, is raising a €25 million fund aimed at pre-seed and seed investments typically between €500k and €1 million[2].
In conclusion, the European defense tech sector is experiencing a significant boom, with German startups leading the way. The trend towards tech-centric firms in the defence sector is expected to continue, with potential for significant growth in the future.
[1] Source: Various articles from reputable news outlets [2] Source: Darkstar press release [3] Source: Delian Alliance Industries press release
- The surge in funding for European defense tech startups, such as the €600 million raised by Helsing, indicates a potential fusion of technology and sports in military strategy and equipment, as these startups develop AI software for weapons, drones, and autonomous submarines.
- In line with the trend of technological advancements in the defense sector, tech-centric firms like ARX Robotics, with their autonomous land drones capable of carrying military payloads, could have a significant impact on sports-like competitions, if repurposed for future military simulations or training scenarios.
